Bank of America’s $580 Million Renewable Tax Credit Deal Is One of Many

  • Bank has ‘strong pipeline’ of deals, lender’s Karen Fang says
  • Deal struck under Inflation Reduction Act to boost clean power

Bank of America plans to facilitate the sale of tax credits to taxable investors.

Photographer: Sergio Flores/Bloomberg
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After striking a first-of-its-kind deal to buy renewable energy tax credits, Bank of America Corp. is carving out a role as broker for the incentives under a plan that gives firms tax breaks for financing clean-power projects.

The second-largest US bank has agreed to buy $580 million in tax credits from IRG Acquisition Holdings, a partnership between renewables developer Invenergy and investors Blackstone Inc. and CDPQ. IRG in turn used money from the deal to buy a portfolio of renewable energy projects from American Electric Power for $1.5 billion in enterprise value.